Robin Johnson, corporate partner at international law firm Eversheds, discusses the impact that the fall in retail price index (RPI) will have on other areas of the economy

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The impact of the falling retail price index

28 May 2009 | by The Retail Bulletin

“The fall in RPI will bring focus on trading contract

s and employment arrangements where prices and salaries are linked to an index. Using a RPI as a standard for automatic increases has been common but I suspect the consequences of a decrease were not foreseen. Companies and employees should review their documentation and ensure the right indices are being used for non-negotiable automatic increases.”